South Korean President Yoon Suk Yeol and Chilean President Gabriel Boric have agreed to strengthen cooperation on securing stable critical mineral supply chains. The leaders met on March 30th (local time) in Santiago, Chile, during President Yoon’s official visit, aiming to establish a robust framework for the supply of essential minerals vital for advanced industries.
Strategic Alliance for Critical Minerals
During a joint press conference following their summit, President Yoon highlighted the natural synergy between the two nations. “Chile, the world’s top producer of copper and the largest owner of lithium reserves, and South Korea, a leader in advanced industries such as semiconductors and batteries, are undoubtedly natural and ideal partners in building critical mineral supply chains,” Yoon stated.
The agreement was formalized through a Memorandum of Understanding (MOU) on Mineral Resources Partnership, signed by both presidents at the Presidential Palace in Santiago. This MOU elevates the existing ‘Mineral Resources Partnership’ between the two countries to a standing committee, signaling a commitment to comprehensive cooperation across the entire value chain, from mining to processing of key minerals like lithium and copper.
An official from the South Korean presidential office described the agreement as establishing a “systematic foundation to ensure the stable supply of Chilean minerals, currently valued at approximately $2.1 billion annually, and to support the advancement of our companies into Chile.”
Expanding Cooperation Beyond Minerals
In addition to critical minerals, the leaders also signed three other MOUs aimed at fostering bilateral investment and enhancing cooperation in maritime and air safety. The scope of existing research cooperation MOUs was also broadened to include environmental, ecological, and Antarctic governance sectors. Chile serves as the gateway to the King Sejong Station, South Korea’s Antarctic research base.
Both nations also committed to establishing a systematic foundation to deepen cooperation in the fields of space and defense. President Boric noted the ongoing collaboration in Antarctic research and extended an invitation to President Yoon to visit the Antarctic, building upon this existing partnership.
Modernizing the Free Trade Agreement
The summit also saw the reactivation of the ‘Korea-Chile FTA Joint Committee for Trade and Investment,’ which had been dormant for a decade. This move is set to accelerate the process of modernizing the Free Trade Agreement (FTA) between the two countries.
The Korea-Chile FTA, the first FTA South Korea signed with a foreign country, came into effect in 2004. With over two decades having passed, there has been a recognized need to update the agreement to reflect significant changes in economic and trade conditions.
In a prior interview with the Spanish news agency EFE before his visit to Chile, President Yoon emphasized the evolving global economy. “Today’s economy is being reshaped around digital trade, artificial intelligence (AI), clean technology, resilient supply chains, and the transition to carbon neutrality,” he said. “The FTA must be evolved to incorporate these new realities.”
During the joint press conference, President Yoon stated, “We have agreed to discuss measures to promote bilateral trade relations, including the improvement of the Korea-Chile FTA, after reviewing the current status of trade and investment.” President Boric concurred, believing the FTA modernization “can contribute to the development of relations between our two countries.”
Deepening Bilateral Relations
Reflecting on the broader relationship, President Yoon described Chile as a “long-standing friend and neighbor across the Pacific, sharing a special and significant history, despite the geographical distance.” He also recalled during a town hall meeting with the Korean community in Spain the previous day that Chile was the first country in the Americas to officially recognize the Republic of Korea government in 1949, underscoring the deep friendship that transcends distance.
President Boric echoed this sentiment, referencing a Korean proverb, “Even a white paper, if folded, becomes better.” He added, “The exchange of critical minerals between Korea and Chile can also be understood from this perspective.” Boric also noted the cultural exchange, mentioning that Chilean wines and fruits are common in Korean households, while Chileans are increasingly familiar with Korean culture through K-pop and groups like BTS.
President Boric warmly welcomed President Yoon, urging him to “think of Chile as your home.” President Yoon expressed his gratitude on behalf of the Korean people and expressed hope for a visit to South Korea in the near future.
Following the business round table event attended by companies from both nations on the afternoon of March 30th, President Yoon was scheduled to travel to Argentina, the final destination of his South American tour.
